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A participation agreement should serve three functions, each of which will have an impact on the participant's rights.
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Risk Participation Agreement Template from waiver template , image source: taylorsmith.org. Risk participation is an agreement where a bank sells its exposure to a contingent obligation to another financial institution. Pilot Program Participation Agreement Participation agreements often contain a provision that if any change in generally accepted accounting principles made effective subsequent to the date of the participation agreement would result in the treatment of the transaction as being other than the purchase and sale of a participation interest in the loan, the parties will agree to.
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